Building Homes and Renewing Communities

The Prime Minister has this week set out our plan to bring back hope, after a decade of decline. Today I want to update the House on the first steps that my Department is taking to rise to these new challenges. We know that the sense of decline that people feel runs deep. The causes are not straightforward, and it did not happen overnight, but the most visible sign of it—a constant reminder of political and economic failure—is the state of our high streets: shuttered-up shops reminding us of what once was, and organised crime too often out there, visible, in the open. Decades of deregulation and austerity for local government and the recent cost of living crisis all share the blame. Every part of Government has a role to play in getting our high streets booming again, so in response we are rebuilding the local state, giving councils new powers over their high streets and putting them back in control of their town and city centres. Local leaders know their high streets best and are best placed to bring them back to life, so in the months ahead we will support councils to block new bookies, vape shops and so-called casinos, and we will double the length of closure orders from six to 12 months, so that police have longer to investigate dodgy shops. We will improve high street shopfronts by setting clearer expectations for their design and appearance. That is alongside our Pride in Place programme, which is giving local communities £6 billion to improve their areas. Everyone who has walked down their high street will have spotted another glaring signal of state failure: people sleeping rough. In 2026, in the world’s fifth richest economy, everyone should have a roof over their head. That is who we are as a country. This is a kind, caring nation where people take pride in looking out for each other, and that is why we will end rough sleeping in our country. When I visited Changing Lives in Newcastle over the summer, I met the incredible Sabrina Cohen-Hatton. Today Sabrina is chief fire officer for Hampshire and the Isle of Wight, but as a teenager she experienced homelessness. Sabrina is an absolute inspiration and shows that if people are given the right support that they need, they can transform their lives. By Christmas this year, everyone sleeping rough will be offered a route off the streets. We have set aside £442 million for a new rough sleeping programme to meet that milestone, while investing in accommodation and support to end it for good. That takes our total investment in homelessness and rough sleeping services to more than £4 billion over the next three years. We know that the reasons people sleep rough are complex. For example, eight out of 10 rough sleepers have a mental health vulnerability. Our plans are more than just accommodation; it is a whole-system approach that will also include access to health, substance or employment support. Women who are homeless are not always visibly sleeping rough, so we are specifically asking services to meet women where they are, to ensure that they get the support they need. Rough sleeping is just the worst symptom of an underlying crisis that we are determined to tackle. For too long, Britain has not built the homes that we need. We are getting Britain building, with council housing at the centre of our plans. The failure to build council homes to replace those that were sold off is one of the major causes of the housing crisis that we inherited at the last election. Last month I met families in Kidbrooke who told me that when they moved into their new social homes, it took so much stress away. One resident told me that they had come from a place with mould on the walls and mice on the floor, and that finding out that they were moving into a new home was like winning the lottery. Last week I announced the first wave of our allocations for the social and affordable homes programme. That is more than 70,000 homes, nearly two-thirds of which will be for social rent. We also announced new support for councils to rebuild their capacity, including a further £46 million over three years, and an expansion of the Pathways to Planning programme. This follows our new national planning policy framework, which will unlock thousands of homes around train stations, and our announcement of new housing and planning powers for mayors, who can now call in planning applications for strategic sites, and grant up-front permission to build for the benefit of local people. We are also giving them greater say over how national housing funding is spent in their areas, with Homes England investment now focused on their priorities. Solving the housing crisis is not just a moral cause, it is an economic necessity. Every shovel in the ground means new investment, new jobs and growth in every postcode. We must also put power in every postcode. The legacies of political choices in the 1980s and the decades since, the centralisation of political power, privatisation of economic wealth, and de-industrialisation all contributed to the loss of control that so many people feel today. The future of our country relies on us building a new economic and political settlement that serves those we represent. That starts with the largest ever transfer of power and funding out to every region of England. For the first time, mayors will receive a share of income tax revenues, meaning that they can invest in what matters most locally. They will also be given new powers to bring rail and bus services under local control, run 16-to-19 funding and employment support, and back local industries and businesses to create new jobs. Where power is devolved, resources will be devolved too. That will end the begging-bowl culture of the past and pave the way for a new era of devolution. In the months ahead we will make sure that every area benefits, by supporting areas without a mayor to establish new strategic authorities. Finally, I want to take a moment to thank all of those involved in the response to the wildfires this summer, including the firefighters, who showed immense bravery battling the flames. I saw the horrendous damage in Stourbridge at first hand, and the level of emotional turmoil was devastating. I will never forget meeting a woman on Quarry Park Road whose neighbour was widowed less than a year ago; she had lost her home and all her possessions too. During the fires we made emergency funding available, and this autumn the Prime Minister will chair a wildfire summit to discuss what more we can do to improve our resilience. The wildfires and extreme heat show the threat that we face from the climate crisis. We must treat this as an emergency in itself. The steps we are taking are only the start. In the months ahead, we will take through the Representation of the People Bill, giving 16 and 17-year-olds the vote and protecting our elections from foreign interference; we will speed up building safety remediation and end the feudal leasehold system; and we will work with local leaders as we fix the foundations of local government. The Prime Minister has promised a new political and economic model and, together, we are shaping it.

I call the shadow Secretary of State.

I thank the Secretary of State for advance sight of her statement. It is a pleasure to see her again so soon. I join her in thanking those involved in the response to this summer’s wildfires, and applauding their remarkable courage. The Secretary of State is right to note that for far too many people across the country the sense of decline runs deep. In far too many places, organised criminals have taken over the high street, and in far too many cases, a place to sleep is something that people cannot take for granted. The stories I have been told by constituents who have experienced rough sleeping or unsafe housing remain some of the most challenging and profound I have heard since coming to this place. Although the Secretary of State talks about a new political and economic model, I am afraid that what we have heard today is a recipe for more of the same. While her focus on the scourge of organised crime on the high street is welcome, I am concerned that she addresses a symptom of the problem but not the underlying cause. While many bookies, vape shops and high street casinos are clearly legitimate, their cash intensiveness and lower overhead costs make them particularly attractive as fronts for money laundering. However, if those businesses are closed, criminals will simply find other types of high street businesses through which to launder money. What conversations is the Secretary of State having with her Home Office colleagues on dealing with organised crime? The right hon. Lady talks about the devolution of power and resources to local people, but what she really means is more politicians being given the power to increase the size of the state and raise taxes, but never to let people keep more of their own money or to interfere less in their lives. Will she confirm whether any tax raising powers devolved to mayors will be accompanied by powers to reduce tax—and if not, why not? Similarly, while the right hon. Lady is right to recognise the vital importance of addressing the housing affordability crisis, the answer cannot be spending ever more taxpayers’ money. Instead, the state must stop making it so difficult and so expensive to get new houses built in the places where people want to live. A greater supply of homes in those places will mean lower costs for everybody, particularly those who are renting and those looking to get on the housing ladder. In London, where our housing crisis is most acute, Labour has been in power for over a decade. Under Sadiq Khan, housing starts fell to their lowest level ever in 2024-25. Construction began on just 4,000 homes across our capital. Can the Secretary of State explain why Labour’s London mayor has failed to get to grips with this problem? Will the changes she proposes actually solve the housing crisis in the capital? If not, it is a little difficult to understand why she is introducing them. Finally, on homelessness and rough sleeping, we share the Government’s ambition to end rough sleeping, but it is impossible to ignore the fact that the new Prime Minister promised to do exactly that in his 2017 manifesto for the Greater Manchester mayoralty. His pledge was to end rough sleeping within three years. In fact, rough sleeping in Greater Manchester has increased every year since 2021, including in 2024-25 when the Labour party was also in power nationally. Can the Secretary of State therefore explain why the Prime Minister failed to solve rough sleeping in Greater Manchester, bearing in mind that it increased when both the local authority and the national Government were run by the Labour party? Can she explain why anybody should believe that he will be able to do so nationally?

I welcome the hon. Member to her place, and I look forward to facing her across the Dispatch Box in the months to come. She comes with a good, strong track record: I believe her grandparents met while they were delivering leaflets for the Labour party—so that’s a good start! I welcome her tone, in particular her agreement on supporting those who helped us over the summer with the wildfires. I look forward to working with her constructively, especially as we move towards the summit in the autumn; I will keep her informed. Some of the challenges we face are of long standing. It would be remiss of me not to gently remind the Conservatives that their austerity measures hollowed out our local services and that the decline in our high streets started on their watch, but the hon. Lady is absolutely right to highlight the challenges our high streets face—that is why we have a strategy. We have made announcements to make sure that we tackle organised crime, giving the police more powers and more funding, with a £30 million boost to police and Trading Standards activity as well as strengthened closure orders and a new high streets organised crime unit. We are tackling the issues that the Conservative party failed to tackle. The Prime Minister has been really clear about ensuring that we work with local leaders and that they are able to do the things that will help them in their local communities, so they can really start to tackle some of the issues. On tax-raising powers and the reduction of tax—again, that is an ongoing dialogue. The hon. Lady will have seen the statement from the whole of Cabinet and the work we are doing through the National Economic Council to work with mayors and local leaders so we can take those issues forward. I was bemused by the hon. Lady saying that the state has made it hard to build. The Conservatives missed every single housing target they set, and they scrapped targets completely after pressure from their own Back Benchers. We have brought in new powers and updated the national planning policy framework. We are giving more powers to mayors, we have brought in mandatory housing targets and mandatory housing plans, and we are working with local areas to deliver the housing we need. We have been very up front about that, but we have also been really clear that infrastructure, wildlife and nature have to be taken into account. I will not take lectures from those in the party opposite, when they created a housing crisis where millions of families were locked out of home ownership. Specifically on London, the city has built significant amounts of council housing, but the hon. Lady is absolutely right to raise the challenges that London faces. When we look at the number of children in temporary accommodation, it is clear that London has an acute need. We recognise that and have provided support through the allocation of money through the social and affordable housing programme. We also recognise the success that the Mayor of London has had in ramping up housing supply where it is needed. Finally, let me turn to what happened in Greater Manchester under our new Prime Minister. The numbers actually fell originally—as a Greater Manchester MP, I saw that—but because there was not a national programme, the numbers then went up as more people came to Greater Manchester. We want to roll out a programme, working with local leaders and mayors, so we can offer that support. I hope the hon. Member will work with us, because I remember that this used to be a target for the Conservatives: they wanted to end rough sleeping, but then they scrapped the target. I hope they can work with us on this renewed effort, in the spirit of how the Prime Minister wants to work, to ensure that we can roll out a programme nationally where everyone who is rough sleeping has an option of safety and an option to come in.

I thank the Secretary of State for very timely and welcome statement. Let me point to a good development in Grimsby—a really good example of town centre housebuilding that is working with local housing associations. The partnership is between Keepmoat and Ongo northern Lincolnshire housing association, and it will provide a mix of private accommodation and social housing. She will find in her mailbox a letter from the leader of the Labour group, Emma Clough, who has written to her to raise the issue of town centre houses, and in particular empty homes in town centres, to ask whether the Government will be looking to put in place additional measures to support local authorities to tackle the scourge of empty homes, which number nearly 2,000 across Grimsby.

My hon. Friend has been a great champion for Grimsby for a very long time—I think we both originally came here together in 2015—and I congratulate her on her work. She is absolutely right to praise the housing associations coming together to build the homes that people desperately need. I will look at that letter, which she is absolutely right to highlight. I will bring forward proposals on how we are working with councils to deal with the empty homes situation.

I call the Liberal Democrat spokesperson.

I congratulate the right hon. Lady on her appointment. I look forward to our exchanges, and to working with her and her team. There are millions fewer council houses than there used to be, yet the need for social housing has only increased, not least given the scourge of poor-quality temporary accommodation for too many children. The Shared Health Foundation has found that in the last six years, temporary accommodation has been noted by the coroner as a contributory factor in the deaths of 104 children. In Taunton and Wellington and elsewhere, all that people see are unprecedented plans for private housing that many will not be able to afford. Councils have been instructed by Whitehall to consent to homes for 180,000 people in Somerset over the next 15 years—a 25% increase in the pace of growth, never seen in the county’s history. What we need instead is a truly ambitious programme of council and social housing—not the Government’s reannouncement that 60% of its 300,000 programme will be social housing and not the 18,000 per year, but the Lib Dem policy of 150,000 social homes a year. I recognise that the statement confirms around 46,000 social homes over 10 years, with further tranches to come, but will the Housing Secretary and the new Prime Minister, who has said a lot about social housing, raise the target from 18,000 a year or not? Will the Government raise their £3.9 billion funding to our proposed £6 billion? If they will not do that, will they write off some of the councils’ housing revenue account debt so that councils such as Somerset can build the 600 council houses that they would build if they could?